Suppose that a 6-percent, annual-pay, Government of Canada bond that matures in two years has a yield

Question:

Suppose that a 6-percent, annual-pay, Government of Canada bond that matures in two years has a yield to of 6.75 percent. If inflation is expected to be 2.5 percent per year over the next two years, what rate would you expect to find on a Real Return Bond that is otherwise identical? Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...